In the Long Run,a Firm in a Perfectly Competitive Market

question 29

Multiple Choice

In the long run,a firm in a perfectly competitive market will

• A) make zero economic profit, so that its owners earn a normal profit.
• B) make zero normal profit but its owners will make an economic profit.
• C) remove all competitors and become a monopolistically competitive firm.
• D) incur an economic normal loss but not earn a positive economic profit.
• E) remove all competitors and become a monopoly.

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Definitions:

Area

A measure of the extent of a surface or a region, usually expressed in square units.

F Distribution

A probability distribution used in analysis of variance (ANOVA), for comparing sample variances to determine if they come from populations with equal variances.

Degrees of Freedom

Degrees of Freedom are a statistical measure indicating the number of independent values or quantities that can vary in the analysis without breaking any constraints.

Area

A measure of the extent of a two-dimensional surface or shape, expressed in square units.